Building Capitalization Rate
Definition of "Building capitalization rate"
Rate of return of capital invested in building improvements. Is segregated from land investments and provides a method of separating property income streams between improvement and land investments. Normally the yield is stated as an annual rate of profit per dollar of investment. Three factors are necessary in order to correctly compute the building capitalization rate: (1) The amount of the investment. (2) The size and duration of the income stream. (3) The eventual resale proceeds.
Popular Real Estate Terms
The lessee becomes a lessor by subletting the property to a third party. Typically, the sandwich leaseholder does not own or use the property. ...
A roof having two slopes on each side. The second slope is longer than the first part of the roof and extremely steep. ...
The clause in a deed beginning with the words " to have and to hold" limiting or defining the ownership nature of the estate in the property granted by the deed. Declares the type of ...
Beam that is supported only at one end. ...
Regular rental of property between the lessee and lessor for a fee. An operating lease does not satisfy the criteria for a capital lease. An example is renting an apartment. A lessee ...
A triangular shaped end of a building where a double sloped roof meets at the top of the triangle. A gable begins at the eaves of a roof and terminates at the roof ridge. ...
Commonly, a covenant refers to a legal treaty or agreement between various parties. Explicitly, a stipulation comes into existence and is signed to confine particular financial transactions ...
A closed-end mortgage is a mortgage in which the collateralized property cannot be used as security for another loan. See also open-end mortgage for a better understanding of the ...
Directly enhancing the physical nature of the property such as renovating the building, installing a new driveway and parking lot, and gardening. ...
Have a question or comment?
We're here to help.